Freddie Mac recently announced a new offering of Structured Pass-Through Certificates (“K Certificates”), which are multifamily mortgage-backed securities. The company expects to offer approximately $1.4 billion in K Certificates (“K-030 Certificates”), which are expected to price on or about July 25, 2013, and settle on or about August 7, 2013. This is Freddie Mac’s twelfth K Certificate offering this year.
The K-030 Certificates are backed by 80 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. The K-030 Certificates will be offered to the market by a syndicate of dealers led by Credit Suisse Securities (USA) LLC and Barclays Capital Inc. as co-lead managers and joint bookrunners. Citigroup Global Markets Inc., Guggenheim Securities, LLC, J. P. Morgan Securities LLC and RBS Securities Inc. will serve as co-managers.
The K-030 Certificates include two senior principal and interest classes, one senior interest only class and a junior interest only class. Kroll Bond Rating Agency, Inc. and Moody’s Investors Service, Inc. have been engaged to rate the three senior classes of K-030 Certificates, which are each expected to receive a rating of “AAA(sf)” and “Aaa(sf),” respectively, subject to ongoing monitoring.
Freddie Mac is a leading issuer of agency-guaranteed structured multifamily securities. K Certificates feature a wide range of investor options with stable cash flows and a structured credit enhancement. K-Deals include guaranteed senior principal and interest, and interest only classes.
Continue Reading 1 2
Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.
Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com